Connect with us
NOT IN USE

World News

Twitter vows legal fight after Elon Musk pulls out of $44 billion deal

Published

on

Elon Musk Turns Down Offer To Join Twitter Board

Elon Musk, the chief executive officer of Tesla and the world’s richest person, said on Friday he was terminating his $44 billion deal to buy Twitter because the social media company had breached multiple provisions of the merger agreement.

Twitter’s chairman, Bret Taylor, said on the micro-blogging platform that the board planned to pursue legal action to enforce the merger agreement.

“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk…,” he wrote.

In a filing, Musk’s lawyers said Twitter had failed or refused to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company’s business performance.

“Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement,” the filing said.

Read Also: Elon Musk officially buys Twitter for $44 billion dollars

Musk also said he was walking away because Twitter fired high-ranking executives and one-third of the talent acquisition team, breaching Twitter’s obligation to “preserve substantially intact the material components of its current business organization.”

SpaceX owner and Tesla CEO Elon Musk speaks during a conversation with legendary game designer Todd Howard at the E3 gaming convention in Los Angeles
Illustration shows Elon Musk’s Twitter profile on smartphone and printed Twitter logos
Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai

Shares of Twitter were down 6% at $34.58 in extended trading. That is 36% below the $54.20 per share Musk agreed to buy Twitter for in April.

Twitter’s shares surged after Musk took a stake in the company in early April, shielding it from a deep stock market sell-off that slammed other social media platforms.

But after he agreed on April 25 to buy Twitter, the stock within a matter of days began to fall as investors speculated Musk might walk away from the deal. With its tumble after the bell on Friday, Twitter was trading at its lowest since March.

The announcement is another twist in a will-he-won’t-he saga after Musk clinched the deal to purchase Twitter in April but then put the buyout on hold until the social media company proved that spam bots account for less than 5% of its total users.

The contract calls for Musk to pay Twitter a $1 billion break-up if he cannot complete the deal for reasons such as the acquisition financing falling through or regulators blocking the deal. The break-up fee would not be applicable, however, if Musk terminates the deal on his own.

Musk’s decision is likely to result in a long protracted legal tussle between the billionaire and the 16-year-old San Francisco-based company.

Source: reuters

Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

World News

Rae Sremmurd Link With Flo Milli For New Single “Community D**k”

Published

on

Rae Sremmurd Link With Flo Milli For New Single "Community D**k"

Multi-platinum duo Rae Sremmurd return today with Flo Milli in tow for their playful new summer single “Community D**k”out via Eardrummer Records/Interscope Records. Accompanied by a visual, the song is the perfect platform for Swae Lee and Slim Jxmmi, to flex their skills and their senses of humor. “Community D**k” is available now at all digital retailers.

(more…)

Continue Reading

People & Lifestyle

Spiritual Guru Asim Aliloski reveals what what celebrities and influential leaders believe in

Published

on

unnamed 7

“What do celebrities & influential leaders believe in?” As you know, celebrities and influential leaders are role models for young and old generations, and they can influence society and impact the world negatively and positively. Spiritual leader and multi-award-winning life coach Asim Aliloski has seen that successful people on top of their game have been searching for a higher power. (more…)

Continue Reading

World News

Kanye West shares ‘obituary’ for Pete Davidson as he reacts to the end of his relationship with Kim Kardashian

Published

on

By

IMG 6728 scaled

American rapper, Kanye West has reacted to the news of the end of the relationship between his ex-wife Kim Kardashian and Pete Davidson. (more…)

Continue Reading

World News

This is why prosecutors want to seize $28,000 from R Kelly’s prison account

Published

on

r.kelly jail

Prosecutors are reportedly asking the federal court to seize about $28K from R Kelly’s prison-inmate account since he has $140,000 in court-ordered fines. (more…)

Continue Reading

World News

Elon Musk accuses Twitter of fraud in countersuit

Published

on

Elon Musk Turns Down Offer To Join Twitter Board

Elon Musk has accused the social media platform, Twitter, of fraudulently holding back information about the company as part of a countersuit. (more…)

Continue Reading

World News

Khloé Kardashian and Tristan Thompson Welcome Their Second Baby via Surrogate

Published

on

63D83905 9812 4083 8C5D 733B2EFB834E

Khloé Kardashian and her estranged baby daddy, Tristan Thompson have welcomed their second child.
(more…)

Continue Reading

Trending